If your company achieves an ROE of 28.5% (in a year when the investor-expected R
ID: 357922 • Letter: I
Question
If your company achieves an ROE of 28.5% (in a year when the investor-expected ROE target is 22%), if another company has an industry-leading ROE of 32.5%, and if ROE has a scoring weight of 20 points, then your company's ROE score on the Investor Expectations scoring standard will be O 24 points 20 points plus a 20% or 4-point bonus award for exceeding the investor expected O22 points (same as the Investor Expectation target) O20 points (for beating the investor-expected ROE) target of 22% by 29.5%) 26 points (129.5% of the 20 points awarded for beating the ROE target by 29.5%) 18 points (87.7% of the industry-leading 32.5% ROE) Copying, redistributing, or website posting is expressly prohibited and constitutes copyright violation. Copyright 2018 by Glo-Bus Software, Inc.Explanation / Answer
Q5. 24 points (20 points plus 20% or 4 bonus award for exceeding the investor-expected target of 22% by 29.5%)
The company exceeded the investor-expected target by = (28.5-22)/22 = 29.5%
However, bonus points are awarded upto a maximum of 20% only. Therefore, 4 bonus points awarded on top of 20.
Q7. the company is struggling unsuccessfully to achieve the annual investor-expected EPS, ROE, and stock price appreciation targets.